REPORT INDICATES 65% DECLINE IN FOREIGN INVESTMENTS IN NIGERIAN STARTUPS

A study reveals a significant 65.83% year-on-year decline in foreign investments in Nigerian startups, dropping from $1.2 billion in 2022 to $410 million in 2023. This decline led to Nigeria losing its position as the top destination for startup investments in Africa to Kenya, which secured the top spot by raising just under $800 million in 2023.

In terms of total startup investments in 2023, Nigeria finished as the fourth-ranked country, behind Kenya, Egypt, and South Africa. An analysis by the research firm ‘Africa: The Big Deal’ showed that the Big Four countries (Kenya, Egypt, South Africa, and Nigeria) continued to dominate, attracting 87% of the total startup funding on the continent, marking their highest share since 2019.

The report highlighted the substantial change in Nigeria’s startup landscape in 2023. Although Nigeria still had the highest number of startups raising $100,000 or more (146, accounting for 29% of the continent), the total amount raised experienced a dramatic YoY decrease of 67%, falling to $410 million from $1.2 billion in 2022 and $1.7 billion in 2021.

Kenya, despite a 25% year-on-year decline, managed to raise just under $800 million in 2023, claiming the most funding and 28% of the continent’s total. Egypt, with the lowest number of startups raising $100,000 or more among the Big Four, secured the second spot on the continent, raising $640 million, benefitting from Kenya and Nigeria’s overall decline in funding.

Quest: Emmanuel kelvin

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